- Credit Suisse will be overseen by an independent monitor after the Swiss regulator found legacy failings.
- The Swiss bank came up short on anti-money laundering and anti-corruption checks for clients such as FIFA and the Venezuelan and Brazilian state oil companies.
- Credit Suisse said it is already taking action to combat these problems and notes it has not been fined or ordered to disgorge profits.
ZURICH (Reuters) – Credit Suisse will be overseen by an independent monitor after failing in its duty to combat corruption in cases linked to soccer body FIFA and Venezuelan and Brazilian state oil companies, Swiss finance industry watchdog FINMA said on Monday.
Separately, the Swiss authority determined Credit Suisse also fell short of its obligation to fight money laundering while managing “a significant business relationship for the bank with a politically exposed person”, FINMA said in a statement.
Instead of disciplining a successful relationship manager who repeatedly breached the bank’s compliance regulations for years, FINMA said Credit Suisse rewarded him with high payments and positive reviews.
FINMA ordered measures to improve the bank’s anti-money laundering process.
It also said it was installing an independent monitor to make sure Credit Suisse followed through and to prevent a repetition of incidents like the ones it investigated, which involve FIFA, Brazilian oil corporation Petrobras, and the Venezuelan oil corporation Petróleos de Venezuela.
“The identified shortcomings occurred repeatedly over a number of years, mainly before 2014,” FINMA said. “An above-average number of faults were discovered in business relationships opened by the former Group subsidiary Clariden Leu AG.”
In response, the Zurich-based bank said FINMA’s probes had discovered “legacy weaknesses”, adding it had already acted to improve compliance.
Credit Suisse also said it has not been fined or ordered to disgorge profits.
“Implementing a culture of compliant growth at Credit Suisse is our highest priority and it is an individual and collective responsibility that we take extremely seriously,” the bank said.
“We will continue to work closely with FINMA to complete the changes that are underway and implement additional measures,” it added.
(Reporting by John Miller; Editing by Maria Sheahan)